Good cashflow management indicators
- You make payments to creditors on agreed payment dates.
- Your overdraft operates within the limit and shows credit days during certain periods every year.
- You have a good credit rating with your Bank.
- You know your costs of production and have identified ways to improve them.
- You plan major farm expenditures in advance and long term farm developments are financed with long term loans.
- You are in control of your finances and find it easy to access finance as required.
Problem cashflow management indicators
- You don’t always pay creditors on time and spend more time than you like taking calls or deflecting calls from creditors.
- Your overdraft is often close to or exceeds the limit, and your current account never or rarely has credit days.
- You finance long term farm development works out of current farm cashflows on a regular basis.
- You may have missed or were late with loan or HP repayments and this will be reflected on your Irish Credit Bureau report and Bank credit rating.
- You are not in full control of your finances and Banks and other creditors are in a stronger position to dictate the terms of trade. You find that getting access to finance can be a hassle.